The main drivers of globalization are:

1. Cost factors: Companies are looking for cheaper labour and manufacturing costs to enable them to stay competitive, so they outsource to other countries. The country receiving the inward investment benefits from the creating of jobs, skills development and technology transfer. Its low costs give it a major competitive advantage.
2. Market factors: As domestic markets become saturated, so emerging markets offer new opportunities. The BRICs (Brazil, Russia, India, China) could dominate world trade in the 21st century, as the US did in the 20th and the UK in the 19th. In any case, companies need to establish a global presence because customers are also global. It is dangerous to stand aside as competitors merge and make alliances.
3. Technology factors: The Internet makes comparison of supply chain costs easy for manufacturers, and comparison of final price easy for the end-user. Mobile communications allow employees to keep in touch all over the world. Software tools on company intranets allow managers to access information anywhere, anytime.
4. Global business cycle: The business cycle used to happen separately in different national economies. With the integrated global economy, it is now international.

• recovery (=upswing)
• growth (=expansion / boom)
• recession (=contraction / downturn)
• depression (= slump)

In every turn of the cycle, the pace of globalization is likely to increase – particulary during the ’recovery’ and ’growth’ phases.

Remember that not all recessions lead to a depression – there might just be a mild slowdown in the economy.

 Video 1: The Economist: World's biggest economies throughout history 

 Video 2: The Economist: Can extreme poverty ever be eradicated?

Enumerate the most relevant ideas from the videos!